A giant gas field being developed by Saudi Arabia in its eastern desert region will largely boost its economy and increase export of associated products, according to a Saudi think-tank.

The Gulf Kingdom, the world’s largest oil exporter, can maximise production from that field without OPEC output curbs since it contains only gas, Jadwa Investments said.

“While we typically peg oil GDP forecasts to oil production, gas development has potential to largely contribute to growth in the coming years,” it said in a report.

“Saudi Aramco is busy developing the Jafurah gas field, the Kingdom’s biggest unconventional non-associated gas field, which is scheduled to start to come on stream in late 2025,” it added.

In late 2023, other non-associated gas fields were discovered in the Empty Quarter and because these gas fields are “non-associated” with oil, the gas can be produced without heed to OPEC+ quotas, the report noted.

“This is important given the role of gas as a bridge in the energy transition and a key feedstock for various industrial projects. Switching to gas domestically will also allow Saudi Arabia to export or refine more of the crude oil it produces.”

(Writing by Nadim Kawach; Editing by Anoop Menon) (anoop.menon@lseg.com)

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